RAJINDER SINGH,MOHALI vs. INCOME TAX OFFICER WARD 6(1) CHANDIGARH, MOHALI

At the outset, both the learned counsel for the assessee and the learned Departmental Representative fairly submitted that the proceedings before the authorities below were concluded ex parte. A.Y.2015-16 2

Having considered the rival submissions and the material on record, we find that the assessment and the appellate proceedings culminated in ex parte orders. Although the assessee failed to diligently prosecute its case before the lower authorities, thereby resulting in avoidable litigation and the wastage of judicial as well as departmental time, the principles of natural justice require that a reasonable opportunity of hearing be afforded before an adverse order is sustained. Therefore, in the interest of substantial justice, we deem it appropriate to set aside the impugned order of the learned CIT(A) and restore the matter to the file of the Assessing Officer for passing a fresh order in accordance with law after affording adequate opportunity of hearing to the assessee.

However, while granting this indulgence, we consider it appropriate to impose costs of Rs.3,000/- upon the assessee for its non-cooperative conduct before the authorities below. The said amount shall be deposited by the assessee with the Kendriya Sainik Board, Department of Ex-Servicemen Welfare, Ministry of A.Y.2015-16 3

In the result, appeal of the assessee is allowed for statistical purposes.